So why did SEC now accepts that everything apart from Bitcoin is a security? This makes me smile that they keep Bitcoin out of the hook but is it true that all other crypto projects can be considered a security?
Well, to be clear, the SEC said that
most digital assets can be considered unregistered securities, not everything. The SEC has a set of guidelines called the Howey Test, which is used to determine whether something is a security. If a cryptocurrency meets the criteria outlined in the Howey Test, then it may be considered a security. Therefore, it is not accurate to say that all other crypto projects can be considered a security, but rather it depends on the specific characteristics of each project and how they fit within the legal definition of a security.
The criteria of the Howey Test that SEC looking for and that consider Bitcoin if it is met to these criteria.
- There's an expectation of profits from the investment
- The investment of money is in a common enterprise
- Should be regulated by them
But the fact is Bitcoin is for everyone and SEC is only on U.S. law.
Yeah, it's true that many crypto projects may be considered securities under U.S. law, but not all.
The determination of whether a cryptocurrency is a security or not depends on its various characteristics and how it functions.